John, aged 55 years, has lost his job as a maintenance mechanic in a company he had worked at for 10 years.The company has now shifted overseas.He has now joined another concern where he is being paid $30,000 against the $39,000 he was earning previously.Is he eligible for wage insurance? If no, why? If yes, how much would he get?

Question

Quizplus · Accepted Answer

Wage insurance is designed to partially compensate for the loss in wages when workers, especially older workers, have to take lower-paying jobs after being displaced. John, being 55, qualifies for wage insurance under the policy for people above 50. The difference in his wages is $9,000 ($39,000 - $30,000), and typically, wage insurance covers 50% of the difference for a certain period, making his compensation $4,500 (50% of $9,000).

John, Aged 55 Years, Has Lost His Job as a Maintenance